Use the following Excel formulation to obtain the minimum cost plan:
Solution
Month | Forecast | Regular time production | Overtime production | Part-time production | Ending Inventory | Backorder | Total output | Output + B.I. - E.I. + Backorder |
0 | 0 | 0 | ||||||
1 | 160 | 150 | 0 | 10 | 0 | 0 | 160 | 160 |
2 | 150 | 150 | 0 | 0 | 0 | 0 | 150 | 150 |
3 | 160 | 150 | 0 | 20 | 10 | 0 | 170 | 160 |
4 | 180 | 150 | 0 | 20 | 0 | 0 | 170 | 180 |
5 | 170 | 150 | 0 | 20 | 0 | 0 | 170 | 170 |
6 | 140 | 140 | 0 | 0 | 0 | 0 | 140 | 140 |
Totals | 960 | 890 | 0 | 70 | 10 | 0 | ||
Cost/ unit | $100 | $150 | $120 | $10 | $50 | TOTAL COST | ||
Cost | $89,000 | $0 | $8,400 | $100 | $0 | $97,500 |
please showing working.. formulas 10. A company produces sofas. The manager wants to prepare a 0. am for the next si...
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